13Bottom Line The Recruiting ProcessIdentify a Job Opening 14Selection

The role of selection is to evaluate each candidates qualifications and pick the one whose skills and interests best match requirements of the job and company.

Some firms use informal selection procedures, such as reviewing application blanks and resumes. Others use formal procedures, such as tests and assessment centers.

Careful selection procedures can be time consuming and costly. They are worthwhile if

the costs of a wrong decision are high

there are many applicants and few openings

selection tools are accurate

15Focus on Management Selection at Toyota

When Toyota Motor Corp. wanted to fill positions at its new Kentucky auto assembly plant, it received 90,000 applications from 120 countries for its 2,700 production jobs and thousands more for the 300 office jobs.

The company wanted to select workers who would conform to its emphasis on teamwork, loyalty, and versatility.

In addition to physical exams and drug tests, applicants had to spend as much as 25 hours completing written tests, workplace simulations, and interviews.

Only 1 of 20 applicants made it to the interview.

16Application Forms

The application form is the first source of information about a potential employee.

It provides the hiring firm with information about educational background, work experience, and outside interests.

Much of this information is especially useful for screening purposes.

17Problems with Application Forms

The information provided by the applicant may not be relevant to job performance.

Job applicants may provide incorrect or misleading information.

The law places many restrictions on what can and cannot be asked on a job application.

18Some Unfair Pre-Employment Inquiries(Excerpted from Figure 12-4)

Any inquiry that implies a preference for people under 40 years of age

Whether applicant is a citizen any inquiry into citizenship than tends to divulge applicants lineage, ancestry, national origin, descent, or birthplace

In an interview, a representative of the hiring firm asks the candidate a series of questions.

The goal is to determine how well the candidates skills and interests match the job requirements.

In a structured interview, all candidates are asked the same list of questions in the same order. This gives each applicant the same chance as others, makes it easier to compare candidates, and makes it less likely the firm will be sued for discrimination in hiring.

In an unstructured interview, there is a looser exchange between the interviewer and job candidate. This may result in a more complete picture.

21Advantages of Interviews

It is easier to ask a series of questions than to develop a test.

Interviewing makes the selection process more personal and gives the interviewer an overall idea as to whether the applicant is right for the job.

The interview may be used to give the applicant information about the job and company.

Interviews may be used to sell the company to the applicant.

Interviews may be be used to complete the information about job candidates.

Good candidates may be unwilling to consider a job seriously unless they had the change to ask questions and gather information.

22Problems with Interviews

Interviewers

show many biases

disagree with one another

ignore much of the information available

The success of an interview in identifying the best candidate for the job depends on the skill and good judgment of the individual interviewer.

There are severe legal restrictions on what can be asked in interviews.

23Guidelines for Improving Interviews

Interviewers should prepare for interviews by making a list of specific topics to be covered and/or specific questions to be asked.

Interviewers should be trained in preparing questions relating to job requirements, probing for details, listening carefully, and avoiding discriminatory questions.

Genetic testing applies the science of genetics to the testing of workers.

28Forms of Ability TestsAbility Tests 29Integrity Tests

A polygraph (lie detector) test is an electronic device used to detect lying. Due to concerns about validity and invasion of privacy, a 1988 federal law outlawed most private uses of pre-employment polygraph tests aimed at assessing employee honesty.

Written honesty or integrity tests contain items concerning ones attitudes toward theft and other forms of dishonesty. These may be less valid than the polygraph tests they replace, and may cause resentment.

Many firms use credit checks to judge applicant integrity. There are legal restrictions regarding credit checks.

30Drug and Impairment Tests

Drug and impairment tests measure abuse of alcohol and other drugs.

More than 80 of major U.S. corporations use drug tests.

Drug tests may involve examination of body fluids, such as urine and blood, or hair, or of reaction of the pupil to light.

In response to concerns about violation of rights of privacy and errors in the testing process, many firms instead use impairment testing. This involves use of activities similar to a video game to measure an employees ability to work.

Impairment tests detect impairment due to things such as illness, sleep deprivation, and emotional preoccupation that would be missed by drug tests.

31Genetic Testing

Genetic testing takes two forms

genetic monitoring involves periodically testing groups of employees to see whether they are showing any alarming chromosomal abnormalities that might have been caused by their environment.

genetic screening is a one-time analysis of DNA taken from blood or other bodily fluids. It is aimed at finding genetic markers that indicate that a person may be especially susceptible to harm from a particular substance.

Genetic monitoring has the approval of most observers since it provides an early warning of dangers from the work environment, but genetic screening is controversial.

32Focus on Management Too Smart forthe New London Police Department

The city of New London, Connecticut refused to grant Robert Jordan a job interview because he scored too high on a pre-employment test.

The citys rationale was that employees who are too smart are likely to be bored in patrol jobs and thus to leave the force.

Jordan sued the department, but a federal judge ruled that the practice of excluding too-bright applicants was constitutional.

33Test Validity

Validity is the degree to which predictions from the selection device are supported by evidence.

Valid tests are expensive to develop.

Some jobs, such as those of top management, are hard to describe, and the abilities and interests required may be all but impossible to predict on the basis of test results.

In general, ability tests and work sample tests are more valid than other selection tools.

34Graphology

Graphology, or handwriting analysis, is sometimes used to predict performance.

The theory behind graphology is that handwriting reflects personality.

Graphology is very popular in western Europe most French companies require applicants to submit handwritten letters.

While graphology is difficult to fake, there is no solid evidence that it predicts job performance.

35Test Fairness

Everyone agrees that a test should be fair, but few agree on a definition of fairness.

To some people, a test is unfair if it includes questions about things that might be unfamiliar to some people because of their race or ethnic origin.

To other people, a test is unfair if it measures things that arent needed on the job but that block some people from being hired.

In the eyes of the law, a fair test is one that does not overpredict or underpredict performance of one group of employees relative to another.

36Assessment Centers

An assessment center is a collection of systematic procedures to approach the selection process systematically.

The centers employ psychologists and other experts on human behavior as well as providing tests, interviews, group discussions, and other approaches for evaluating job candidates.

Assessment centers may use role playing and in-baskets.

Assessment centers have additional uses, including early detection of management talent and skill development for assessors.

While expensive, assessment centers are quite valid and are seen by employees as offering a fair chance to show abilities.

37Selecting for Teams

Organizations must carefully screen team candidates for their ability to work with other team members.

In putting together a self-directed team, Delta Dental Plan

spent more than 6 months recruiting and selecting team members.

used a personality test to find members with complementary personality types.

selected some bilingual team members.

selected members from both inside and outside the company.

assessed candidates interpersonal skills with interviews by members of the HR department and others.

Placement means fitting people and jobs together after the people have become employees of the firm.

It includes everything from helping new employees feel at home in the firm to promoting them to positions of greater responsibility or demoting them to less demanding position when necessary.

40Orientation

Orientation involves introducing new employees to their jobs and to the company.

Orientation

reduces uncertainties, makes company policies and expectations clear, and provides a good idea of what the firm, plant, and coworkers are like.

sends a signal that the new employee has an important role to play in the organization.

offers a bonding opportunity, ensuring that new hires dont feel alienated and helping to instill in them a sense of pride and opportunity.

41Lateral Move

A lateral move is sideways rather than up or down.

One type of lateral move, job rotation, may be used to build worker skills and provide a more solid base for later promotions.

Employees may welcome the change of pace and duties of job rotation, and may develop a greater sense of pride and self-worth as they learn new skills.

Lateral moves are sometimes dictated by organizational changes, such as reorganizations.

42Lateral Moves at W. R. Grace

W. R. Grace Company, a chemical and consumer products company, has been using lateral moves for years.

Purposes include

assignment to special projects for the companys future

to fill slots at locations far from their current posts

to newly created jobs in other countries

The companys VP for corporate administration reports that, They get new challenges, and we get broadened managers -- something a global, decentralized company must have.

43Promotion

A promotion is a move up, generally to a new title, more responsibility, and greater financial rewards.

Promotions are valued by employees, and move competent employees to positions with greater impact on the firms success.

Promotions also demonstrate to other employees that good performance and potential are rewarded, thus serving as a motivating device.

Promotions must be handled carefully since jobs at different levels may require different skills. If not, the Peter Principle may occur.

Some firms have instituted fallback positions for employees who are unhappy with their promotions.

44Demotion

A demotion is a move down in the organizational hierarchy to a lower title and salary and less responsibility.

Demotions are stressful to employees and may be resisted by unions.

Demotions may be necessary. A firm may demote rather than fire a poorly-performing employee. Also, especially during economic downturns, employees may prefer demotions to unemployment.

Some firms have experimented with demoting employees temporarily so they can relate better to their subordinates.

45Termination

Sometimes firings are necessary because employees have continued to perform poorly or because they have been unmotivated or uncooperative.

Firings are traumatic for the terminated individual and costly for the firm. For instance, the firm will have to bear the costs of recruiting and training a replacement.

Employees who are performing below standards should be counseled and given written performance goals and plans for meeting them.

Those employees should have a probationary period and should receive regular feedback over that period.

46Termination (Continued)

Firing should only be used if corrective efforts fail, as a last resort.

In recent years, many employees have been fired as a result of things having little to do with their motivation or performance, such as technological changes, restructuring, mergers, changes in strategy, and foreign competition.

In some cases, firms hire outplacement companies to assist those who are affected.

There are increasing legal restrictions on firing.

47Guidelines for Effective Termination

Give as much warning as possible for mass layoffs.

Be sure the employee hears of the termination from a manager, not from a colleague.

Sit down one-on-one in a private office with the individual to be terminated.

Tell the individual in the first sentence that he or she is terminated leave no room for confusion.

Express appreciation for the employees past accomplishments if appropriate.

48Guidelines for Effective Termination (Continued)

Complete the firing session within 15 minutes. Make the session brief and to the point, not an opportunity for debate.

Keep the conversation professional, avoiding personal comments.

Briefly explain how much severance pay will be provided and for how long provide written explanations of severance benefits.

Unless security is an issue, dont rush the employee off site.

49Training and Development

Training and development helps the firm meet its immediate human resource needs.

Over the long run, training and development ensures that the firms employees are ready to meet future challenges.

Training and development takes many forms.

Firms in the U.S. spend an estimated 30 billion annually to train employees.

50Training in Japan

Workers in the U.S. often receive far less training than their Japanese counterparts.

New production workers in Japan receive 380 hours of training, and new workers in Japanese-owned plants in the U.S. receive 370 hours.

In contrast, new workers in U.S.-owned plants in North America receive only 47 hours of training, or one-eighth as much.

51Training and DevelopmentNeeds Assessment

In general, training and development should follow a systematic needs assessment.

The needs assessment should consider three sets of factors

The organization. What is the environment for training in terms of the organizations goals, resources, and climate for training?

The task. What is the work to be performed and what are the conditions under which it will be performed?

The person. What personal capabilities are needed to do the job, and what are the people like who will do the job?

52On-the-Job Training

On-the-job training is conducted while employees perform job-related tasks. Employees are not taken out of the workplace or put in a classroom.

Employees learn the job by doing it, with coaching and feedback from a supervisor or more experienced employees.

On-the-job training is the most direct approach to training and development and offers quick returns in terms of improved performance.

Job rotation, regular coaching by a supervisor, committee assignments to involve individuals in decision-making activities, and staff meetings to broader employee understanding of company activities outside their immediate areas are examples.

53Off-the-Job Training

It is often necessary to train employees away from the workplace.

Such off-the-job training may take place elsewhere within the firm or outside the company.

With trait approaches, employees are rated on such traits as friendliness, efficiency, and punctuality. The assumption is that these traits are related to performance. Trait approaches suffer from a variety of problems, and should never be used alone.

With behavioral approaches, such as the critical incidents method and behaviorally anchored rating scales, employees are rated on specific actions.

With outcome approaches, employees are rated on what they are supposed to accomplish on the job.

63Performance Reviews at Northern States Power

Northern States Power Company is committed to achieving the benefits of workplace diversity.

Its annual performance reviews now include an assessment of how well an individual creates an environment that cultivates workforce diversity.

The reviews also measure each persons active participation in meeting departmental diversity goals.

64360o Feedback

Many firms are now using 360-degree feedback.

With 360-degree feedback, the employee receives feedback from four sources the supervisor, subordinates, peers or coworkers, and self-ratings.

Job Analysis is the systematic study of a job to determine its characteristics.

A job specification is a summary of the qualifications needed in a worker for a specific job.

A job description is a short summary of the basic tasks making up a job.

Performance standards define the goals to be achieved by a worker over a specified period of time.

67Pay Systems

Seniority Pay is linked to years of service. The idea is that seniority reflects loyalty to the company as well as valuable experience.

Individual performance Individual employees are paid on the basis of how well they do on the job. With a piece-rate system, total wages are tied directly to output. These have strong motivational effects.

Group performance How much each person makes is based on how well the group as a whole does. Such systems encourage cooperation, and may give group members an incentive to push slow workers to do better.

68Guidelines for Basing Pay on Individual or Group Performance

Appropriately link pay to performance.

Use pay-for-performance as part of a broader human resources management system.

Build employee trust and promote the belief that performance makes a difference.

Use multiple layers of rewards.

Increase employee involvement.

Include nonfinancial incentives.

69Pay Systems (Continued)

Plantwide or company productivity Employee pay rates are based in part on the productivity of the entire plant or organization. One form is the Scanlon Plan, in which groups of employees suggest to management how productivity might be improved and are given bonuses if the suggestions help.

Organization-based These include plans such as profit-sharing plans, under which employees get a bonus if company profits are high, and employee stock option plans (ESOPS), which reward employees with company stock. Organization-based plans give companies flexibility to make payments when they can be afforded and may result in positive employee attitudes toward the company, but have little impact on individual performance.

70The Wage Determination Process(Figure 12-6)

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